Novato Sanitary District keeps PG&E as energy provider

The Novato Sanitary District board agreed this week to keep Pacific Gas and Electric Co. as its energy provider, citing concerns about increased costs if the district were to move to competitor Marin Clean Energy.

The five-member board voted unanimously Monday to continue with PG&E. The proposed switch would have cost the district about $14,400 more annually in energy bills, according to the district. Also, because the district participates in PG&E programs that save it money, the total hit would be about $28,000 annually if it were to switch, said Michael Di Giorgio, chairman of the board.

"There are programs we are involved with that are only available through PG&E at this time, and that's an issue because part of the cost of switching is that we don't get those savings if we go to (Marin Clean Energy)," Di Giorgio said.

The board directed district staff to monitor the costs involved with Marin Clean Energy, the renewable energy program of the Marin Energy Authority, and is hoping to develop similar programs. "As MCE moves closer pricewise to where we can switch without costing money," the board could reconsider, said Jean Mariani, board president pro tem.

The district, one of Marin's biggest electricity consumers with a total PG&E bill of about $750,000 a year, "strives to be environmentally conscious and financially prudent," said Beverly James, the district's manager/engineer.

In the summer, when air conditioning use soars with the temperatures, especially in Southern California, it puts a strain on the state's energy reserves. In PG&E's Peak Day Pricing Program, "we get a call from PG&E in the morning and cut back our electricity use in the afternoon," freeing up juice for the rest of the state, Di Giorgio said. This earns the district about $11,000 in annual credits from PG&E. Another similar PG&E program run by EnerNOC brings in about $3,000 a year.

Should Marin Clean Energy develop similar programs, and should other cost issues be resolved, the district board might reconsider Monday's decision.

"We are going to shop the market and see how the costs compare between PG&E and MCE," said board member William Long. "It's nice to have competition."

In June, the Novato City Council voted to continue buying power for the city's various municipal services from PG&E, citing projections that electricity from Marin Clean Energy would cost the city $7,800 a year more than PG&E's power.

Last week, Larkspur's City Council voted to choose the Marin Energy Authority's "light green" program rather than opt for PG&E, acknowledging that the move would mean an estimated cost of an additional $1,500 a year for electricity.

Earlier this month, the Corte Madera Town Council chose the energy authority rather than PG&E for its municipal electricity. Ross switched to Marin Clean Energy last month, a move that will save the town about $88 annually.